The Russellville School Board’s budget committee recommended against distributing Christmas bonuses to its approximate 810 employees this year amid near-future financial concerns at a noon meeting Monday.

Assistant superintendent and business manager for the Russellville School District Nathan Barber advised the committee that due to a decrease in government funding as a result of lower enrollment numbers, mixed with a potential one percent increase in employer contribution to retirement pay and other looming financial concerns, giving raises to the district’s employees could prove to be financially hurtful to the district next school year or the year after.

“At this point and time, I don’t feel comfortable [giving raises], and I do want to add to that that the year is not over yet,” Barber said. “We’ve got four or five $300,000 to $800,000 issues out there, all of them negative, that are going to hit next year. This is a longterm safety issue, as far as finances.”

Barber said enrollment numbers for the first quarter of 2012-13 school year were down compared to last year, adding that for each enrolled student, the Arkansas Department of Education funds $6,267 to the district.

Superintendent Randall Williams said the one percent increase in employer contribution toward retirement pay, that would increase the district’s financial responsibility toward retirement from 14 to 15 percent will likely be approved by state legislator and could be in place as early as next school year.

Last year, the district awarded $500 to its approximate 423 licensed employees as a Christmas bonus, and $350 to its 387 classified employees.

The district also added $2,000 to the base of their teachers’ salary schedule, along with $530 increment raises, and gave classified employees a .60 cent raise and a .20 cent step raise.

The total cost of the bonuses and raises for all employees last year was approximately $2,230,000.

Barber said health insurance rates also increased last year and the district opted to pay $231 per month per employee, up from the previous $197, to help offset the increase in premiums.

“In the past, when the money has become available the board has always pushed the money out to the teachers in the form of a bonus or a raise where we add it to the base of the salary schedule,” Barber said. “They had a good year last year and this year’s not over, but at this point in time we are opting to take a cautious approach.”

The committee agreed against giving mid-year bonuses, but did recommend that they meet again in the spring to discuss the possibility of awarding bonuses later.

“We’re not pleased that we’re not going to be able to do this this year,” Williams said.

“We have been fortunate in the past that we’ve been able to give these bonuses and its’a great thing because we think we have the best employees around and we value each and every one of them.”